A HISTORY OF INNOVATION Since 1916, Modine Manufacturing Company has applied innovative thermal technology to meet customer's needs. Founder A.B.Modine made innovation a company value and built a thriving business. Modine breakthroughs in customized heating and cooling solutions have yielded state-of-the-art components, modules and systems that have given the world's vehicle makers and commercial equipment manufacturers a competitive edge in the markets they serve.
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Q4 Loss of $1.47 per Fully Diluted Share on Revenue of $255 Million; Results Reflect Significant Global OEM Production Declines; Intense Focus on Cost Structure and Liquidity
RACINE, Wis.--(BUSINESS WIRE)--Jun. 2, 2009--
Modine Manufacturing Company (NYSE: MOD), a diversified global leader in
thermal management technology and solutions, today reported its
financial results for the fourth quarter of fiscal 2009, as follows:
Fourth Quarter
2009
2008(a)
Change
($ in millions except per share data)
Net Sales
$ 254.8
$ 447.6
$ (192.8
)
Gross Profit
$ 23.6
$ 61.3
$ (37.7
)
% of Sales
9.3
%
13.7
%
(440 bp
)
Selling, General & Administrative Expenses
$ 40.3
$ 61.0
$ (20.7
)
Pre-Tax Loss from Continuing Operations
$ (37.4
)
$ (9.6
)
$ (27.8
)
Net Loss
$ (47.1
)
$ (35.2
)
$ (11.9
)
Diluted Loss Per Share
$ (1.47
)
$ (1.10
)
$ (0.37
)
Twelve Months to Date Cash Flow from Operations (b)
$ 93.5
$ 81.7
$ 11.8
Net Debt
$ 205.7
$ 186.0
$ 19.7
(a) Fourth quarter fiscal 2008 amounts have been adjusted to
reflect the removal of the one month lag in thereporting
of results for the company's international operations
(b) Includes cash flow from both continuing and discontinued
operations
“The global recession, with the lowest global vehicular OEM production
rates in decades, continues to significantly challenge our business,”
said Thomas A. Burke, Modine President and Chief Executive Officer.
“Responding to these unfavorable operating conditions, we continue to
take aggressive actions using our four-point strategic framework to
address our business performance, lower our underlying cost structure
and preserve liquidity. We are actively refocusing our product portfolio
and manufacturing footprint to ensure we provide technically advanced,
high value solutions to our customers that ultimately will deliver the
expected returns to our shareholders. Additionally, we are driving our
Modine Operating System principles, which include a critical focus on
leadership behaviors, throughout our organization to accelerate
continuous process improvement. Collectively, these targeted actions are
providing the momentum that will see us through the current economic
crisis and ensure an advantaged position for Modine as the market
volumes recover.”
Fourth Quarter Overview
Sales volumes declined 43.1 percent as a result of the weakened
economy, instability in the global financial markets, and a
corresponding downturn in the company’s vehicular markets;
In response to the decline in sales volumes, the company implemented a
significant reduction of direct costs in its manufacturing facilities
and a 20 percent reduction of indirect costs in its manufacturing
facilities, including a reduction in the company’s global workforce of
approximately 1,200 employees since the fourth quarter of fiscal 2008;
Gross margin declined 440 basis points from 13.7 percent to 9.3
percent, as a reduction in direct and indirect costs and lower
materials costs partially offset the lower sales volumes and the
corresponding underabsorption of fixed costs in the company’s
manufacturing facilities;
Selling, general & administrative expenses decreased by $20.7 million,
or 33.9 percent, reflecting the company’s intense focus on lowering
its cost structure commensurate with the decline in sales;
Impairment charges totaled $13.2 million primarily related to a
decline in the value of an investment in an affiliate and a decline in
the value of certain program assets;
Adjusted EBITDA of $1.7 million exceeded the company’s expectations
and also exceeded the minimum required adjusted EBITDA loan covenant
by $26.7 million; and
As previously announced, the company is proceeding with the divestment
of its South Korean vehicular HVAC business, which previously was
reported in its Original Equipment – Asia segment and is now reported
as a discontinued operation.
Cash and Liquidity
“Our fourth quarter fiscal 2009 results reflect our near-term emphasis
on preserving cash and liquidity, as well as our efforts to attain a
more competitive cost base, improve our longer term competitiveness and
more effectively capitalize on growth opportunities in our core thermal
management markets as identified through our strategic planning
process,” said Bradley C. Richardson, Executive Vice President –
Corporate Strategy and Chief Financial Officer. “Given the overall
market conditions, we are very pleased with our continued ability to
generate cash and exceed our adjusted EBITDA loan covenant.
“Further, we have reduced our planned capital spending to a limit of $65
million in fiscal 2010, which is significantly below the company’s
recent historical levels and have adopted rigorous working capital
discipline through the active, customer- and supplier-supported
management of working capital,” Richardson continued.
Operating cash flows were $93.5 million in fiscal 2009, compared with
$81.7 million in fiscal 2008. The increase in operating cash flows year
over year was primarily driven by the positive impact of the company’s
working capital management initiatives during fiscal 2009. The company’s
net debt (debt less cash on hand) at March 31, 2009 was $205.7 million,
compared to $186.0 million at March 31, 2008. The company’s net debt
level has risen primarily due to operating cash flows which were not
fully sufficient to fund growth-oriented capital expenditures during the
year. As of March 31, 2009, the company had available borrowing capacity
of approximately $99 million, subject to its ability to comply with
ongoing debt covenants.
“Based on the company’s available borrowing capacity, the $26.7 million
in cushion built at the end of the fourth quarter with respect to our
EBITDA covenant, as well as our anticipated fiscal 2010 results and
further actions we have at our discretion,” Richardson continued, “we
believe we have sufficient liquidity to manage our business through the
global recession and remain in compliance with our loan covenants.”
Full Year Fiscal 2009 Overview
Sales for the fiscal year ended March 31, 2009 decreased by 12 percent
to $1.41 billion from $1.60 billion reported in fiscal 2008, driven by
a major reduction in global production volumes, most notably in
Europe, during the second half of the fiscal year;
Fiscal 2009 gross profit was $187.0 million, or 13.3 percent of sales,
in comparison to the fiscal 2008 gross profit of $242.8 million, or
15.2 percent of sales, due to the significant volume declines in the
company’s Original Equipment – North America and Original Equipment –
Europe segments resulting from the global economic downturn, partially
offset by the company’s intense focus on lowering its overall cost
structure;
Fiscal 2009 loss from continuing operations before income taxes was
$103.0 million, as compared to a loss from continuing operations
before income taxes of $16.6 million reported during fiscal 2008;
The 2009 fiscal year loss included asset impairment charges of $43.7
million including an impairment of the Original Equipment – Europe
goodwill balance of $9.0 million and long-lived asset impairment
charges in the Original Equipment - Europe and Original Equipment –
North America segments of $18.2 million and $15.8 million,
respectively; and
During fiscal 2009, the company reported an after-tax loss from
continuing operations of $103.6 million, or $3.23 per fully diluted
share, as compared to an after-tax loss from continuing operations of
$54.4 million, or $1.70 per fully diluted share in fiscal 2008.
Outlook
The global recession has had an adverse impact on the company’s sales
volumes in fiscal 2009 and this trend is expected to continue to
adversely affect the company into fiscal 2010. Our expectations for
fiscal 2010 include:
Revenues up slightly from the fourth quarter 2009 run rate resulting
from incremental volume from several new program launches globally;
Favorable impact of significant cost reductions implemented in late
fiscal 2009; and
Continued strong emphasis on preserving cash and liquidity.
“As we move forward in fiscal 2010, we remain focused on the
fundamentals of our Four Point Plan,” concluded Burke. “We have been
precise in our actions to protect the critical resources of the core
products in our portfolio and the targeted markets we serve. Our teams
are prepared to deliver high customer satisfaction and financial results
on the many new program launches within our powertrain cooling, engine
products and commercial HVAC businesses. Our business leaders are
focused on delivering the full flow-through of recently implemented
manufacturing and SG&A cost initiatives and are prepared to undertake
further actions should they become necessary. Our emphasis on preserving
cash and liquidity will be unrelenting as we manage the company through
the global recession.”
Conference Call and Webcast
Modine will conduct a conference call and live webcast, with a slide
presentation, on Tuesday, June 2, 2009 at 10:00 a.m. Central Time (11:00
a.m. Eastern Time) to discuss the fiscal 2009 fourth quarter. The
webcast and accompanying slides will be available on the investor
section of the Modine website at www.modine.com.
The dial-in phone number for the audio portion of the call is
800-599-9829; passcode: 81884725. The international call-in number is
617-847-8703; passcode: 81884725. Participants are encouraged to log on
to the webcast and conference call about 10 minutes prior to the start
of the event. A replay of the audio and the slides will be available on
the investor relations section of the Modine website at www.modine.com
about two hours after the live call concludes. A call-in replay will be
available through June 9, 2009, at 888-286-8010; passcode: 69679910 or,
for international callers, at 617-801-6888; passcode: 69679910. A
transcript of the call will be posted to the company’s website on or
about June 5, 2009.
About Modine
Modine, with fiscal 2009 revenues of $1.4 billion, specializes in
thermal management systems and components, bringing highly engineered
heating and cooling technology and solutions to diversified global
markets. Modine products are used in light, medium and heavy-duty
vehicles, heating, ventilation and air conditioning equipment,
off-highway and industrial equipment, refrigeration systems, and fuel
cells. The company employs approximately 7,000 people at 32 facilities
worldwide in 15 countries. For more information about Modine, visit www.modine.com.
Forward-Looking Statements
This report contains statements, including information about future
financial performance, accompanied by phrases such as “believes,”
“estimates,” “expects,” “plans,” “anticipates,” “intends,” and other
similar “forward-looking” statements, as defined in the Private
Securities Litigation Reform Act of 1995. Modine’s actual results,
performance or achievements may differ materially from those expressed
or implied in these statements, because of certain risks and
uncertainties, including, but not limited to, those described under
"Risk Factors" in Item 1A of Part II of the company's Quarterly Reports
on Form 10-Q for the quarters ended December 31, 2008, September 30,
2008 and June 30, 2008 and the Company's Annual Report on Form 10-K for
the year ended March 31, 2008 and under Forward-Looking Statements in
Item 2 of Part 1 of those same periodic reports. Other risks and
uncertainties include, but are not limited to, the following: the
Company’s ability to remain in compliance going forward with its debt
agreements; Modine’s ability to fund its liquidity requirements and meet
its long-term commitments given the continued decline and disruption in
the credit markets due to the world-wide credit crisis; the impact the
current global economic uncertainty and credit market turmoil is having
on Modine, its customers and its suppliers and any worsening of such
economic conditions; the secondary effects on Modine’s future cash flows
and liquidity that may result from Modine’s customers and lenders
dealing with the economic crisis and its consequences; Modine’s ability
to limit capital spending and/or consummate planned divestitures;
Modine’s ability to recover the book value of the South Korean business,
if divested; Modine’s ability to successfully implement restructuring
plans and drive cost reductions; Modine’s ability to maintain adequate
liquidity to carry out restructuring plans while investing for future
growth; Modine’s ability to satisfactorily service its customers during
the implementation and execution of any restructuring plans and/or new
product launches; Modine’s ability to avoid or limit inefficiencies in
the transitioning of products from production facilities to be closed to
other existing or new production facilities; Modine’s ability to
successfully execute its four-point recovery plan; Modine’s ability to
further cut costs to increase its gross margin and to maintain and grow
its business; impairment of assets resulting from business downturns;
Modine’s ability to realize future tax benefits; customers’ actual
production demand for new products and technologies, including market
acceptance of a particular vehicle model or engine; Modine’s ability to
increase its gross margin, including its ability to produce products in
low cost countries; Modine’s ability to maintain customer relationships
while rationalizing its business; Modine’s ability to maintain current
programs and compete effectively for new business, including its ability
to offset or otherwise address increasing pricing pressures from its
competitors and cost-downs from its customers; Modine’s ability to
obtain profitable business at its new facilities in China, Hungary,
Mexico, India and Austria and to produce quality products at these
facilities from business obtained; the effect of the weather on the
Commercial Products business, which directly impacts sales;
unanticipated problems with suppliers meeting Modine’s time and price
demands; the impact of environmental laws and regulations on Modine’s
business and the business of Modine’s customers, including Modine’s
ability to take advantage of opportunities to supply alternative new
technologies to meet environmental emissions standards; economic, social
and political conditions, changes and challenges in the markets where
Modine operates and competes (including currency exchange rate
fluctuations, tariffs, inflation, changes in interest rates, recession,
and restrictions associated with importing and exporting and foreign
ownership); changes in the anticipated sales mix; Modine’s association
with a particular industry, such as the automobile industry, which could
have an adverse effect on Modine’s stock price; the nature of the
vehicular industry, including the dramatic decline in customer build
rates; work stoppages or interference at Modine or Modine’s major
customers; unanticipated product or manufacturing difficulties,
including unanticipated warranty claims; unanticipated delays or
modifications initiated by major customers with respect to product
applications or requirements; costs and other effects of unanticipated
litigation or claims, and the increasing pressures associated with
rising health care and insurance costs; and other risks and
uncertainties identified by the Company in public filings with the U.S.
Securities and Exchange Commission. The Company does not assume any
obligation to update any forward-looking statements.
Non-GAAP Financial Disclosures
Adjusted EBITDA and Net Debt (which are defined below) are used in this
press release are not measures that are defined in generally accepted
accounting principles (GAAP). These non-GAAP measures are used by
management as a performance measure to judge liquidity and covenant
compliance for our business. These measures provide a more consistent
view of performance than the closest GAAP equivalent for management and
investors. Management compensates for this by using these measures in
combination with the GAAP measures. However, these measures are not, and
should not be, viewed as substitutes for the GAAP measures. The
presentations of the non-GAAP measures in this press release are made
alongside the most directly comparable GAAP measures.
Definition – Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA)
The Company’s (loss) earnings from continuing operations before interest
expense and provision for income taxes, adjusted to exclude unusual,
non-recurring or extraordinary non-cash charges and up to $14.0 million
of cash restructuring and repositioning charges, and further adjusted to
add back depreciation and amortization expense, as defined in the
applicable debt agreements; this is a financial measure of the profit
generated excluding the above mentioned items.
Definition – Net Debt
The sum of short- and long-term debt, less cash on hand; this is an
indicator of the company’s debt position after considering on hand cash
balances.
-- Financial tables follow --
Modine Manufacturing Company
Consolidated statements of operations (unaudited)
(In thousands, except per share amounts)
Three months ended March 31,
Twelve months ended March 31,
2009
2008 *
2009
2008 *
Net sales
$ 254,777
$ 447,599
$ 1,408,714
$ 1,601,672
Cost of sales
231,130
386,328
1,221,680
1,358,872
Gross profit
23,647
61,271
187,034
242,800
Selling, general & administrative expenses
40,334
61,018
199,613
217,835
Restructuring charges
2,274
3,887
30,404
3,565
Impairment of goodwill and long-lived assets
13,228
3,888
43,735
35,343
Loss from operations
(32,189
)
(7,522
)
(86,718
)
(13,943
)
Interest expense
4,182
3,611
13,775
11,070
Other expense (income) - net
1,046
(1,493
)
2,460
(8,394
)
Loss from continuing operations before income taxes
(37,417
)
(9,640
)
(102,953
)
(16,619
)
Provision for income taxes
3,346
8,699
644
37,808
Loss from continuing operations
(40,763
)
(18,339
)
(103,597
)
(54,427
)
Loss from discontinued operations (net of income taxes)
(6,753
)
(16,843
)
(7,481
)
(14,206
)
Gain on sale of discontinued operations (net of income taxes)
400
-
2,466
-
Net loss
$ (47,116
)
$ (35,182
)
$ (108,612
)
$ (68,633
)
Loss per share of common stock - basic:
Continuing operations
$ (1.27
)
$ (0.57
)
$ (3.23
)
$ (1.70
)
Loss from discontinued operations
(0.21
)
(0.53
)
(0.23
)
(0.44
)
Gain on sale of discontinued operations
0.01
-
0.08
-
Net loss - basic
$ (1.47
)
$ (1.10
)
$ (3.38
)
$ (2.14
)
Loss per share of common stock - diluted:
Continuing operations
$ (1.27
)
$ (0.57
)
$ (3.23
)
$ (1.70
)
Loss from discontinued operations
(0.21
)
(0.53
)
(0.23
)
(0.44
)
Gain on sale of discontinued operations
0.01
-
0.08
-
Net loss - diluted
$ (1.47
)
$ (1.10
)
$ (3.38
)
$ (2.14
)
Weighted average shares outstanding:
Basic
32,112
31,974
32,077
32,030
Diluted
32,112
31,974
32,077
32,030
Dividends paid per share
$ -
$ 0.175
$ 0.300
$ 0.700
Comprehensive (loss) earnings, which represents net loss
adjusted by the post-tax change in foreign-currency translation,
the effective portion of cash flowhedges and change in
SFAS No. 158 benefit plan adjustment recorded in shareholders'
equity, for the three month periods ended March 31, 2009 and 2008
were ($103,891) and ($24,897), respectively, and for the twelve
month periods ended March 31, 2009 and 2008, were ($232,564) and
$2,744, respectively.
Condensed consolidated balance sheets (unaudited)
(In thousands)
March 31, 2009
March 31, 2008 *
Assets
Cash and cash equivalents
$ 43,536
$ 38,595
Short term investments
1,189
2,909
Trade receivables - net
122,266
248,007
Inventories
88,077
112,852
Assets held for sale
29,173
70,165
Other current assets
41,610
60,763
Total current assets
325,851
533,291
Property, plant and equipment - net
426,565
481,084
Assets held for sale
34,328
66,418
Other noncurrent assets
65,388
87,490
Total assets
$ 852,132
$ 1,168,283
Liabilities and shareholders' equity
Debt due within one year
$ 5,232
$ 24
Accounts payable
94,506
155,533
Liabilities of business held for sale
28,018
53,295
Other current liabilities
123,277
130,062
Total current liabilities
251,033
338,914
Long-term debt
243,982
224,525
Deferred income taxes
9,979
23,634
Liabilities of business held for sale
12,181
16,229
Other noncurrent liabilities
91,120
81,863
Total liabilities
608,295
685,165
Shareholders' equity
243,837
483,118
Total liabilities & shareholders' equity
$ 852,132
$ 1,168,283
* The prior year amounts have been adjusted to account for the
removal of the one-month reporting lag for foreign operations.
Modine Manufacturing Company
Condensed consolidated statements of cash flows (unaudited)
(In thousands)
Twelve months ended March 31,
2009
2008 *
Cash flows from operating activities:
Net loss
$ (108,612
)
$ (68,633
)
Adjustments to reconcile net loss with net cash provided
by operating activities:
Depreciation and amortization
73,334
81,786
Impairment of goodwill and long-lived assets
49,766
47,420
Deferred income taxes
(13,977
)
21,541
Other - net
7,091
3,433
Net changes in operating assets and liabilities
85,914
(3,874
)
Net cash provided by operating activities
93,516
81,673
Cash flows from investing activities:
Expenditures for plant, property and equipment
(103,261
)
(89,440
)
Change in restricted cash
(10,828
)
-
Proceeds from dispositions of assets
17,303
10,020
Settlement of derivative contracts
(233
)
(1,974
)
Other - net
3,394
85
Net cash used for investing activities
(93,625
)
(81,309
)
Cash flows from financing activities:
Net increase in debt
26,163
47,140
Financing fees paid
(3,876
)
(331
)
Cash proceeds from exercise of stock options
18
701
Repurchase of common stock, treasury and retirement
(594
)
(7,710
)
Cash dividends paid
(9,679
)
(22,633
)
Other - net
(393
)
(8,800
)
Net cash provided by financing activities
11,639
8,367
Effect of exchange rate changes on cash
(6,589
)
3,657
Net increase in cash and cash equivalents
4,941
12,388
Cash and cash equivalents at beginning of the year
38,595
26,207
Cash and cash equivalents at end of the year
$ 43,536
$ 38,595
Condensed segment operating results (unaudited)
(In thousands)
Three months ended March 31,
Twelve months ended March 31,
2009
2008 *
2009
2008 *
Sales:
Original Equipment - Asia
$ 4,183
$ 5,145
$ 17,405
$ 14,984
Original Equipment - Europe
97,441
221,714
597,361
757,658
Original Equipment - North America
96,411
139,970
481,769
521,112
South America
21,628
39,301
136,415
136,933
Commercial Products
36,858
47,741
187,723
198,101
Fuel Cell
3,457
1,105
17,739
3,335
Segment sales
259,978
454,976
1,438,412
1,632,123
Corporate and administrative
535
1,494
3,166
3,955
Eliminations
(5,736
)
(8,871
)
(32,864
)
(34,406
)
Total net sales
$ 254,777
$ 447,599
$ 1,408,714
$ 1,601,672
Operating income/(loss):
Original Equipment - Asia
$ (2,848
)
$ (1,354
)
$ (9,187
)
$ (6,489
)
Original Equipment - Europe **
(13,957
)
23,767
(20,822
)
84,531
Original Equipment - North America
(1,389
)
(11,018
)
(27,052
)
(45,241
)
South America
255
2,163
11,903
10,991
Commercial Products
582
(1,880
)
14,468
8,785
Fuel Cell
2,221
(582
)
9,985
(1,828
)
Segment (loss) income from operations
(15,136
)
11,096
(20,705
)
50,749
Corporate and administrative
(17,067
)
(18,639
)
(65,898
)
(64,772
)
Eliminations
14
21
(115
)
80
Loss from operations
$ (32,189
)
$ (7,522
)
$ (86,718
)
$ (13,943
)
* The prior year amounts have been adjusted to account for the
removal of the one-month reporting lag for foreign operations.
** The Original Equipment - Europe results for the twelve months
ended March 31, 2009 include restructuring charges of $22,075 andgoodwill and long-lived asset impairment charges of $27,163.
Modine Manufacturing Company
Adjusted Earnings before interest, taxes, depreciation and
amortization (EBITDA) from continuing operations (unaudited)
(In thousands)
Three months ended March 31,
Twelve months ended March 31,
2009
2008 *
2009
2008 *
Loss from continuing operations
$ (40,763
)
$ (18,339
)
$ (103,597
)
$ (54,427
)
Interest expense
4,182
3,611
13,775
11,070
Provision for income taxes
3,346
8,699
644
37,808
Depreciation and amortization (a)
15,827
20,952
69,200
74,195
EBITDA from continuing operations
(17,408
)
$ 14,923
$ (19,978
)
$ 68,646
Restructuring and repositioning charges
3,515
Non-cash charges (b)
15,610
Adjusted EBITDA
$ 1,717
(a) Depreciation and amortization of $970 and $4,134 for three and
twelve months ended March 31, 2009 related to discontinued
operations and was excluded from the depreciation and amortization
presented above. Depreciation and amortization of $1,672 and $7,591
for the three and twelve months ended March 31, 2008 related to
discontinued operations and was excluded from the depreciation and
amortization presented above.
(b) Non-cash charges are comprised of long-lived asset impairments,
non-cash restructuring and repositioning charges, exchange gains or
losses on intercompany loans and non-cash charges which are unusual,
non-recurring or extraordinary.
Net Debt (unaudited)
(In thousands)
March 31, 2009
March 31, 2008 *
Debt due within one year
$ 5,232
$ 24
Long-term debt
243,982
224,525
Total debt
249,214
224,549
Less: cash and cash equivalents
43,536
38,595
Net debt
$ 205,678
$ 185,954
* The prior year amounts have been adjusted to account for the
removal of the one-month reporting lag for foreign operations.
RACINE, Wis.--(BUSINESS WIRE)--May. 18, 2009--
Modine Manufacturing Company (NYSE: MOD), a diversified global leader in
thermal management technology and solutions, announced today that it
will release its fourth quarter fiscal 2009 financial results for the
period ended March 31, 2009, on Tuesday, June 2, 2009. The company will
conduct an earnings conference call and webcast for investors on that
same date at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).
During the call, Modine President and Chief Executive Officer Thomas A.
Burke and Executive Vice President, Corporate Strategy and Chief
Financial Officer Bradley C. Richardson will review the company’s fourth
quarter fiscal 2009 financial results.
To access the live webcast, including presentation slides, please log on
through the investor relations section of Modine’s website at http://www.modine.com
at least 10 minutes prior to the start of the event. If you choose to
participate on the conference call, please dial 800.599.9829
(international dial in 617.847.8703) and enter passcode 81884725. A
replay of the slides and the audio will be available after June 2 on the
investor relations section of Modine’s website at http://www.modine.com.
An audio only replay will be available through midnight on June 9, 2009
by dialing 888.286.8010 (international replay 617.801.6888) and entering
passcode 69679910. A transcript of the call will be posted to the
company’s website after June 4, 2009.
About Modine
With restated fiscal 2008 revenues of $1.9 billion, Modine specializes
in thermal management systems and components, bringing highly engineered
heating and cooling technology and solutions to diversified global
markets. Modine products are used in light, medium and heavy-duty
vehicles, heating, ventilation and air conditioning equipment,
off-highway and industrial equipment, refrigeration systems, and fuel
cells. The company employs approximately 7,900 people at 33 facilities
worldwide in 15 countries. For more information about Modine, visit www.modine.com.
RACINE, Wis.--(BUSINESS WIRE)--Mar. 18, 2009--
Modine Manufacturing Company (NYSE: MOD), a diversified global leader in
thermal management technology and solutions, today announced that Scott
L. Bowser has been appointed Regional Vice President – Americas
effective immediately. Bowser, who previously served as Managing
Director for the company’s Brazilian operations, succeeds Thomas G.
Cromwell, who has resigned from the company.
Bowser, an 11-year Modine veteran, will oversee the company’s North
American and South American Original Equipment operations. His focus
will be on implementing the reorganization announced late last year and
continuing to drive process and productivity improvements throughout
those businesses.
“We are very pleased to have a seasoned executive like Scott step in to
lead our Americas’ region during these challenging times,” said Thomas
A. Burke, Modine President and Chief Executive Officer. “Scott, who
started his Modine career as a plant manager, is a proven leader with
deep experience in both operations and sales. Most recently, Scott
successfully integrated our Brazilian operations into the Modine global
organization and has been actively managing the notable success in that
business. During his tenure, Modine Brazil nearly doubled its revenue
and achieved the highest gross margins among our original equipment
businesses globally. His broad experience uniquely qualifies him to lead
our Americas Original Equipment business with a demonstrated ability to
understand and respond to the needs of our customers.”
Since joining Modine in 1998, Bowser has served in numerous operations
and management positions, including Plant Manager in Pemberville, Ohio;
General Sales Manager – Truck; and Managing Director – Modine Brazil.
Bowser holds an undergraduate degree in physics and mathematics from
Anderson College and a Master of Business Administration from Bowling
Green State University.
Prior to Modine, Bowser served in increasingly responsible leadership
roles in operations, sales, and general management and ultimately as
president at The Pierce Company, an automotive and industrial engine
components manufacturer.
Bowser’s successor at Modine Brazil in Sao Paulo will be named at a
future date.
With restated fiscal 2008 revenues of $1.9 billion, Modine specializes
in thermal management systems and components, bringing highly engineered
heating and cooling technology and solutions to diversified global
markets. Modine products are used in light, medium and heavy-duty
vehicles, heating, ventilation and air conditioning equipment,
off-highway and industrial equipment, refrigeration systems and fuel
cells. The company employs approximately 7,900 people at 33 facilities
in 15 countries. For more information about Modine, visit www.modine.com.
RACINE, Wis.--(BUSINESS WIRE)--Feb. 17, 2009--
Modine Manufacturing Company (NYSE: MOD), a diversified global leader in
thermal management technology and solutions, today announced that it has
suspended its quarterly cash dividend on its common stock.
About Modine
Modine, with fiscal 2008 adjusted revenues of $1.9 billion, specializes
in thermal management systems and components, bringing highly engineered
heating and cooling technology and solutions to diversified global
markets. Modine products are used in light, medium and heavy-duty
vehicles, heating, ventilation and air conditioning equipment,
off-highway and industrial equipment, refrigeration systems, and fuel
cells. The company employs approximately 7,900 people at 33 facilities
worldwide in 15 countries. For more information about Modine, visit www.modine.com.
RACINE, Wis.--(BUSINESS WIRE)--Feb. 17, 2009--
Modine Manufacturing Company (NYSE: MOD), a diversified global leader in
thermal management technology and solutions, today announced that it has
reached agreement with its primary lenders and note holders on a waiver
of defaults that existed at December 31, 2008 and amendments to its
revolving credit and note purchase agreements.
“As we focus on preserving cash and liquidity, we are pleased we were
able to complete this amendment process,” said Bradley C. Richardson,
Executive Vice President - Corporate Strategy and Chief Financial
Officer. “We believe these amended agreements, which are structured
based on our assumptions about operating in a recessionary environment,
will provide the company sufficient liquidity to execute our plans and
consistently maintain our day-to-day business activities.”
The terms and conditions of these waivers and amendments will be
discussed in the company’s third quarter fiscal 2009 earnings conference
call on February 17, 2009. In addition, the amended agreements will be
filed with the U.S. Securities and Exchange Commission on an upcoming
Form 8-K.
About Modine
Modine, with fiscal 2008 adjusted revenues of $1.9 billion, specializes
in thermal management systems and components, bringing highly engineered
heating and cooling technology and solutions to diversified global
markets. Modine products are used in light, medium and heavy-duty
vehicles, heating, ventilation and air conditioning equipment,
off-highway and industrial equipment, refrigeration systems, and fuel
cells. The company employs approximately 7,900 people at 33 facilities
worldwide in 15 countries. For more information about Modine, visit www.modine.com.
Forward-Looking Statements
This report contains statements, including information about future
financial performance, accompanied by phrases such as “believes,”
“estimates,” “expects,” “plans,” “anticipates,” “intends,” and other
similar “forward-looking” statements, as defined in the Private
Securities Litigation Reform Act of 1995. Modine’s actual results,
performance or achievements may differ materially from those expressed
or implied in these statements, because of certain risks and
uncertainties, including, but not limited to, those described under
“Risk Factors” in Item 1A. in Part II. in this report.Other
risks and uncertainties include, but are not limited to, the following:
the impact the current global economic uncertainty and credit market
turmoil is having on Modine, its customers and its suppliers and any
worsening of such economic conditions; the secondary effects on Modine’s
future cash flows and liquidity that may result from Modine’s customers
and lenders dealing with the economic crisis and its consequences;
Modine’s ability to limit capital spending and/or consummate planned
divestitures; Modine’s ability to recover the book value of the South
Korean business, if divested; Modine’s ability to successfully implement
restructuring plans and drive cost reductions as a result; Modine’s
ability to maintain adequate liquidity to carry out restructuring plans
while investing for future growth; Modine’s ability to satisfactorily
service its customers during the implementation and execution of any
restructuring plans and/or new product launches; Modine’s ability to
avoid or limit inefficiencies in the transitioning of products from
production facilities to be closed to other existing or new production
facilities; Modine’s ability to successfully execute its four-point
recovery plan; Modine’s ability to further cut costs to increase its
gross margin and to maintain and grow its business; impairment of assets
resulting from business downturns; Modine’s ability to realize future
tax benefits; customers’ actual production demand for new products and
technologies, including market acceptance of a particular vehicle model
or engine; Modine’s ability to increase its gross margin, including its
ability to produce products in low cost countries; Modine’s ability to
maintain customer relationships while rationalizing its business;
Modine’s ability to maintain current programs and compete effectively
for new business, including its ability to offset or otherwise address
increasing pricing pressures from its competitors and cost-downs from
its customers; Modine’s ability to obtain profitable business at its new
facilities in China, Hungary, Mexico, India and Austria and to produce
quality products at these facilities from business obtained; the effect
of the weather on the Commercial Products business, which directly
impacts sales; unanticipated problems with suppliers meeting Modine’s
time and price demands; the impact of environmental laws and regulations
on Modine’s business and the business of Modine’s customers, including
Modine’s ability to take advantage of opportunities to supply
alternative new technologies to meet environmental emissions standards;
economic, social and political conditions, changes and challenges in the
markets where Modine operates and competes (including currency exchange
rate fluctuations, tariffs, inflation, changes in interest rates,
recession, and restrictions associated with importing and exporting and
foreign ownership); changes in the anticipated sales mix; Modine’s
association with a particular industry, such as the automobile industry,
which could have an adverse effect on Modine’s stock price; the nature
of the vehicular industry, including the dramatic decline in customer
build rates; work stoppages or interference at Modine or Modine’s major
customers; unanticipated product or manufacturing difficulties,
including unanticipated warranty claims; unanticipated delays or
modifications initiated by major customers with respect to product
applications or requirements; costs and other effects of unanticipated
litigation or claims, and the increasing pressures associated with
rising health care and insurance costs; and other risks and
uncertainties identified by the Company in public filings with the U.S.
Securities and Exchange Commission.The Company does not assume
any obligation to update any forward-looking statements.
